An overriding theme across the past 18 months in the beef sector has been increased carcass weights. In general, fed steer and heifer carcasses averaging 25-30 lb. heavier year over year has been a net positive for the industry.
Focused marketing of a premium beef brand demands some attention to tracking price spreads across differing quality specifications. The USDA quality grade scale provides the domestic measuring stick by which the trade differentiates demand across the quality spectrum.
The steep upward price trajectory in the fed cattle market remains wholly supported on fed cattle remaining in tight supply and the tight grasp of cattle feeders keeping feedlot stays and carcass weights elevated. Weights continue to underpin beef production tonnage, cutting the harvest pace deficit for fed cattle.
Increased Prime carcass production is a boon to sales growth in this category for both Certified Angus Beef and the industry as a whole. A smaller Prime cutout premium above Choice also means greater adoption of this premium product tier by grocers and restaurants. All of the above lead to a firmer foothold for beef as the protein of choice for consumers.
More demand for individual Prime grade cuts is being discovered on the part of packers and wholesalers as they educate downstream users about the opportunities to capitalize on growing Prime demand.
January often presents the lowest beef demand, while February likely vies second. Also, we see a shift in consumer preference away from holiday middle meat roasts toward end cuts for “comfort food” meals.
While the tightest fed cattle supplies in the cycle are projected this year, consumer demand has issued directional support that tight supplies do not necessitate narrowing of price differentiation for quality.
Manage Consent
To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
Functional
Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes.The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.